Decision to Import Two LNG Cargoes at Nearly Double the Price
Bangladesh has approved the import of two cargoes of liquefied natural gas (LNG) for September at more than twice the price of LNG supplied under government-to-government (G2G) agreements.
The Cabinet Committee on Government Purchase approved the proposals on Monday (August 24). The two cargoes will cost $24.62 and $24.25 per million British thermal units (MMBtu), respectively, compared with around $10 per MMBtu under G2G arrangements.
Posco International Corporation will supply one cargo on September 13-14, while TotalEnergies Gas & Power Ltd will deliver the other on September 23-24.
International energy markets have remained volatile since the war involving Iran. Disruptions in the Strait of Hormuz have affected LNG supplies from Qatar and Oman, forcing Bangladesh to purchase LNG from the spot market at significantly higher prices.
Earlier this month, four LNG cargoes were ordered through the direct procurement method, but none has arrived in Bangladesh, contributing to a severe gas shortage. Petrobangla expects gas supply to improve somewhat by August 30.
Bangladesh began importing LNG in 2018 as domestic gas production declined. The country currently has two floating storage and regasification units (FSRUs), which can supply up to 1,100 million cubic feet of gas per day.
Petrobangla sources said Bangladesh normally supplies around 2,700 million cubic feet of gas daily. On August 23, however, total supply fell to 2,382 million cubic feet, including 1,624 million cubic feet from domestic sources.
The rising cost of imported LNG has also increased Petrobangla’s financial burden. During the first nine months of the current fiscal year, the average purchase cost of gas was Tk27.64 per cubic metre. After the war began, the average cost rose to Tk45.79 per cubic metre between April and June 2026.
As gas was sold at an average of Tk23.63 per cubic metre during those three months, Petrobangla incurred a loss of Tk21.82 per cubic metre. The state-owned company’s deficit reached approximately Tk16,500 crore in the 2025-26 fiscal year.